Public Sector Economics

This course uses the basic tools of microeconomics to analyse the role of government and the rationale for and design of taxation and expenditure policy. Emphasis is placed on attaining a solid grasp of the basic theory of public economics. The topics to be covered include a review of basic microeconomics, welfare economics, cost-benefit analysis, public goods, externalities, public choice, public expenditure programs (including education, health, pensions and welfare payments), and taxation (including efficiency and equity issues, tax incidence, Australian tax policy, and fiscal federalism).